BBVA Caps 'Remarkable' 2025 with Record Profit and Payouts, Eyes Higher Returns in 2026
BBVA Caps 'Remarkable' 2025 with Record Profit and Payouts, Eyes Higher Returns in 2026
MADRID – Banco Bilbao Vizcaya Argentaria (BBVA) closed the books on what its CEO, Onur Genç, termed a "remarkable" 2025, posting record profits and shareholder distributions even as central banks in Spain and Mexico eased monetary policy. The bank's resilience highlights a successful shift towards balancing robust growth with sustained profitability.
Net attributable profit rose 4.5% to a record €10.5 billion, with earnings per share climbing 5.8% to €1.78. This was powered by a 16.2% surge in lending (at constant euros) and a industry-leading return on tangible equity (ROTE) of 19.3%. Gross income jumped 16.3%, supported by double-digit growth in both net interest income and fees.
"We have delivered growth with profitability," Genç stated during the earnings webcast. A key engine was customer growth, with BBVA attracting a record 11.5 million new customers in 2025. The bank emphasized the long-term value of these relationships, noting that revenue per customer in Spain multiplies by 3.7x from the first to the fifth year.
Geographically, Spain delivered "outstanding" results with net profit hitting €4.1 billion, while Mexico had a "remarkable" year, contributing €1.4 billion in net profit for the fourth quarter alone. BBVA gained significant market share in both markets, underscoring its competitive strength.
On capital, the CET1 ratio stood at a robust 13.75% at year-end. The board proposed a total regular cash distribution of €5.2 billion for 2025, representing a 50% payout and a record dividend of €0.92 per share. This is complemented by an ongoing €4 billion extraordinary share buyback program.
Looking to 2026, management expressed confidence that strong business momentum would continue, guiding for a group ROTE of around 20% and a cost-to-income ratio below 40%. The guidance assumes stable rates in Europe and further, managed rate cuts in Mexico.
The bank also shed light on its digital ambitions, revealing that all 127,000 employees now have access to AI tools from OpenAI and Google. While Genç admitted the bank is in the "early innings" of its AI adoption, several initiatives, including a digital advisor named "Blue," are already underway.
Market Voices: Analysts and Investors Weigh In
Eleanor Vance, Senior Banking Analyst at Financier Trust: "BBVA's ability to grow loans at this pace in a falling rate environment is impressive. Their low deposit cost in Mexico, nearly half the industry average, provides a crucial margin cushion. The 20% ROTE target for 2026 is ambitious but seems within reach if their market share gains hold."
Carlos Ruiz, Portfolio Manager at Iberian Capital Partners: "The dividend is the headline for income investors—it's a powerful signal of confidence. More importantly, the underlying customer growth metrics suggest this isn't a one-off. Their strategy in digital and AI seems pragmatic, focused on enhancing service rather than just cutting costs."
Mikael Forsberg, Editor at 'The Critical Investor' Newsletter: "Let's not get carried away. A large portion of this 'record' profit is buoyed by one-off regulatory boosts to capital. Their guidance for 2026 bakes in significant spread compression in Mexico. This feels like peak cyclical performance being dressed up as structural triumph. The AI talk is just that—talk—with no quantified impact on the P&L."
Priya Mehta, Fintech Consultant: "The 11.5 million new customers figure is staggering. It shows their digital platforms are acquiring users at a tech-company pace. If their cross-sell ratios improve as projected, this customer base will be a recurring revenue machine, making them less vulnerable to interest rate swings in the future."
BBVA is a Spanish multinational financial services group headquartered in Bilbao, operating as a universal bank across retail, corporate, and investment banking.